Hours after the reports of Microsoft Corp contemplating to cut about 5 percent of its workforce which is about 11,000 roles in the company, the firm's CEO Satya Nadella on 18 January in a blog ensured all those whose roles which are eliminated have full support during these transitions from the firm.
"U.S.-benefit-eligible employees will receive a variety of benefits, including above-market severance pay, continuing healthcare coverage for six months, continued vesting of stock awards for six months, career transition services, and 60 days’ notice prior to termination, regardless of whether such notice is legally required. Benefits for employees outside the U.S. will align with the employment laws in each country," Satya Nadella said in a blog post.
Though he mentioned reduction of overall workforce by 10,000 jobs through the end of FY23 Q3, he added that the firm will continue to hire in key strategic areas. He also committed that during the transition process, the firm will do so in the most thoughtful and transparent way possible.
In the blog, Nadella cited those customers who accelerate their digital spend during the pandemic have now optimize their digital spend to do more with less. He also mentioned that global recession, artificial intelligence upgrade and financial results as reasons for job cuts.
Earlier in October, it was reported that Microsoft laid off under 1,000 employees across several divisions. Those cuts impacted less than 1 percent of the software giant’s workforce of more than 200,000. The company had said in July that a small number of roles had been eliminated and that it would increase its headcount down the line.
